Infrastructure

Keeping unemployment at low levels has come at the cost of productivity. A wave of investment is now needed to avert economic decline in Germany.

Alexander Doll is critical of the lack of transparency in the recent DB Schenker sale process, where Danish company DSV emerged as the winning bidder. And he is calling for better coordination between the private and public sectors to meet German infrastructure needs.

Copenhagen recently lost its iconic stock exchange landmark in a fire, and are now discussing traditional or modern restoration plans. Few cities blend old and new as adeptly. And in terms of infrastructure, German cities could learn a thing or two.

Germany can only emerge from its economic slowdown through increased investment. However, many companies are avoiding it as a business location. An Ifo survey highlights the need for reforms, while a recent report from consultants Strategy& points to the dangers of continued deindustrialization.

The productivity of Europe's economy has fallen dramatically in recent years. The result is a continuing loss of growth. Without a large-scale investment offensive, our prosperity will crumble, warns the McKinsey Global Institute.

The government coalition has fortunately agreed on an unprecedented investment package for Deutsche Bahn. But there is still a lack of financial planning certainty for the period after 2027.

Until now, tech companies have been the main builders of data centers. However, the prospect of returns is attracting new investors who are renting out the facilities. Presently, the US asset manager Blackrock is pursuing a majority stake in the data center subsidiary of Frankfurt's energy provider Mainova.